One problem in mobile advertising is how to design ads that are impactful but not intrusive. One way to lower intrusiveness would be to present smaller ads, which is particularly relevant given the smaller screens on mobile devices. However, one consequence of smaller ads could be reduced ad effectiveness. The current study investigated the effects of ad size and positioning on recognition memory for brands that were advertised in a simulated mobile news service. The results showed that recognition memory was significantly greater for brands advertised in full-screen ads than for those advertised in part-screen ads, but only when the part-screen ads were embedded in the text of a news article. This result occurred even though the average exposure times were longer for the embedded part-screen ads. This suggests that there was reduced encoding of ad attributes due to competition from the text of the news articles.
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